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SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15345 / April 23, 1997
Securities and Exchange Commission v. Jerry G. Kilgore, U.S.D.C.
Colo., Civil Action No. 97-Z-633
On April 17, 1997, United States District Court Judge Zita
Weinshienk issued a Final Judgment of Permanent Injunction and
Further Relief against Jerry G. Kilgore ("Kilgore") of Aurora,
Colorado, assessing a civil penalty against him in the amount of
$25,000 and barring him from serving as an officer or director of
a public company. The injunction prohibits Kilgore from
violating Sections 10(b) and 13(b)(5) of the Securities Exchange
Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1 and 13b2-2
thereunder and from aiding and abetting violations of Section
13(b)(2)(A) of the Exchange Act and Rule 12b-20 thereunder.
Kilgore consented to the entry of the injunction and to the
assessment of the civil penalty and bar from serving as an
officer or director of a public company without admitting or
denying the allegations of the Commission's complaint. In its
complaint, the Commission alleged that between 1992 and 1994
Kilgore misappropriated approximately $370,000 from Microtech
Medical Systems, Inc. ("Microtech"). Kilgore was president,
treasurer and a director of Microtech and misappropriated the
money by making unauthorized withdrawals from Microtech's bank
account and by causing Microtech to pay unauthorized bonuses to
himself and unearned consulting fees to relatives. The
Commission further alleged that Kilgore falsified Microtech's
books and records and made false statements to Microtech's
accountants with the result that Microtech's financial statements
were materially false and misleading.